Q1:
To consider the weighted average of the possible outcomes based on firms historical collection experience for new customer (--- data that check the probability of customer delaying the payments and its cash impact)
Q2:
Yes, because the net npv after all the posibilies considered is positive
A firm is evaluating a $100,000 sales opportunity from a new customer. The customer is expected...
A firm has made a credit sales with the following credit terms: $2,000,000 order, 30-day credit terms VCR (0.30) = Variable cost ratio/$ of sales EXP (0.05/CP) = Expenses for credit administration and collection/$ of sales i (0.10/365) = Daily interest rate CP (45 days) = Collection period for sale Calculate the variable cost of this sales Calculate the present value of this sales Calculate the NPV of this sales
3) A firm has made a credit sales with the following credit terms: $2,000,000 order, 30-day credit terms • VCR (0.30) = Variable cost ratio/$ of sales EXP (0.05/CP) = Expenses for credit administration and collection/$ of sales i (0.10/365) = Daily interest rate CP (45 days) = Collection period for sale a) Calculate the variable cost of this sales b) Calculate the present value of this sales c) Calculate the NPV of this sales
Please and in full as well as number thr answer
PROFORMA STATEMENTS AND RATIOS The BIB-HOP Manufacturing Company was very satisfied with their ox performance The company had only begun operations the prior year, and as a result sales had been slow However things had picked up considerably in x wie sales more than doubing in volume B8-HOP had changed none of its business practices during the year and had managed to hold its cost of goods sold to 78%...
Identify the cost issues facing the firm in this case. Chrystal Moulding and Repairs Works (CMRW) is a successful SME based in Ashhurst, a small rural town close to Palmerston North. CMRW manufactures a variety of products and provides a range of services to clients. Work involves (a) moulding of plastics and other materials, (b) custom builds using plastic, fibreglass, kevlar, carbon fibre and other new age materials and (c) the repair of anything using these materials. George Hood, one...
Estimate purchases in 1996. (Hint: Cost of goods equals
purchases plus beginning inventory minus ending
inventory.)
Use the percent of sales method to estimate funds needed
in 1996 using the 1995 percentages.
CASE 1 2 TOPEKA ADHESIVES (1) FINANCIAL FORECASTING Karen and Elizabeth Whatley are twins. Their mother teaches Physics at a mid- western university and their father runs a successful engineering firm. Not sur- prisingly, they are quite gifted at math and science, and they've displayed these talents in...
Required:
1. What is the amount of Apple’s accounts
receivable as of September 30, 2017?
2. Compute Apple’s accounts receivable turnover as
of September 30, 2017.
3. How long does it take, on average, for
the company to collect receivables for fiscal year ended September
30, 2017?
4. Apple’s most liquid assets include (a)
cash and cash equivalents, (b) short-term marketable
securities, (c) accounts receivable, and (d)
inventory. Compute the percentage that these liquid assets (in
total) make up of...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...